GOCC’s idle funds to help spur economic growth, prevent new taxes, reduce gov’t loans

In the latest discussion regarding PhilHealth’s P89.9 billion in excess funds, economist and Albay Second District Representative Joey Salceda has voiced strong support for the Department of Finance’s (DOF) stance. Salceda supports the DOF’s view that redirecting these funds could stimulate economic development, “PhilHealth has not been effectively using these excess funds to improve member benefits,” Salceda remarked. “They’ve been stagnant for too long. Utilizing these funds for public investment is a more productive approach. It helps the government save on interest payments, which is beneficial for the economy,” explained Salceda.

Albay 2nd District Rep. Joey Salceda

The economist aligns with the DOF’s argument that it is preferable to use these excess funds for Unprogrammed Appropriations rather than introducing new taxes or incurring additional debt, “Low government spending reduces growth. Reduced growth creates poverty. Poverty creates hunger. Hunger creates disease,” said Salceda.

Contrary to popular belief, Salceda emphasized that these excess funds are derived from taxpayer money, not from contributions by PhilHealth members. According to the General Appropriations Act, President Ferdinand Marcos allocated P162 billion in taxpayer-funded subsidies to PhilHealth, on top of the premiums collected from its members. “If there is still excess money, it suggests that we have allocated too much in subsidies. It’s more prudent to use this surplus taxpayer money for other urgent needs rather than accumulating new debt with interest,” noted Salceda.

The DOF projects that using these unutilized subsidies could contribute to a 0.8% increase in economic growth, potentially reaching a total growth rate of 6.5% for the year. This reallocation is also expected to generate around 600,000 additional employment opportunities.

Meanwhile, Salceda has suggested that PhilHealth should consider allocating some of the excess subsidies in the future to enhance benefits, especially for catastrophic illnesses affecting senior citizens.

ADVT.

This article is brought to you by Albay 2nd District Rep. Joey Salceda.